Alert Digest NO. 1 of 1996

Alert Digest No. 1 of 1996
Part 4

STATE TAXATION (OMNIBUS AMENDMENT) BILL

12.1

This Bill was introduced into the Legislative Assembly on 15 May 1996 by the Honourable Alan Stockdale MP with the Honourable Phil Gude MP.

12.2

The purpose of the Bills is to make miscellaneous amendments to various State Revenue Acts. The Acts include:-

Business Franchise (Tobacco) Act 1974;
Debits Tax Act 1990;
Financial Institutions Duty Act 1982;
Land Tax Act 1958;
Pay-roll Tax Act 1971;
Stamps Act 1958
Valuation of Land Act 1960.

12.3 Part 2 - Business Franchise (Tobacco) Act 1974

Clause 5 amends section 5 to allow disclosure of information to environmental health officers. Clause 6 amends section 5A to provide for the publication of the Register and the particulars of any person whose licence has been suspended or revoked. The information which may be published is specified in the section. Clause 7 amends section 7 to specify where the Commissioner may refuse to issue a retail tobacconist's licence. Clause 8 amends sections 7AA, 7AB, 7AD and 7AE which relate to applications for wholesale tobacco merchant's licence and group wholesale tobacco merchant's licence. The amendments relate to requirements for corporations which are not listed companies.

The Committee notes the comments in the Second Reading Speech:-

"These current amendments will further improve the operation of the licensing requirements upon wholesalers by providing for notification to the Commissioner of State Revenue where a company holding a licence is taken over, or has a change in its corporate controllers or major shareholders. The Commissioner must be warned if unscrupulous operators seek to avoid probity checks and obtain a licence by taking over an existing licence holder, where they would have been unable to obtain a licence had they applied in their own right. These provisions however, only apply to non-listed companies, as it would be impractical to require a listed company to notify when there has been a change in its shareholding of more than 10%, that percentage being the threshold which triggers the requirement for notification."

Clause 11 amends section 9 to provide that where a retail tobacconist's licence is revocable at will, the revocation takes effect immediately upon notice if the licence holder has within the previous five years been convicted of an offence under the Act. Clause 12 inserts new section 9BA which allows the Commissioner to suspend a tobacconist's licence by giving written notice to the licence holder. The licence holder has 14 days within which to show cause why the licence should not be revoked. Clause 14 inserts new section 9E which provides that the Commissioner may by written notice revoke a retail tobacconist's licence after taking the licence holder's submissions into account. Appeal from the Commissioner's decision is made to the Administrative Appeals Tribunal.

12.4 Part 3 - Debits Tax Act 1990
Part 4 - Financial Institutions Duty Act 1982
Part 5 - Land Tax Act 1958
Part 6 - Pay-Roll Tax Act 1971

Clause 16 amends the Debits Tax Act 1990 to ensure that debits made by charitable institutions which are exempt under the Financial Institutions Duty Act 1982 are not taxable under the Debits Tax Act 1990. Clause 18 makes minor amendments to the Financial Institutions Duty Act 1982. Clauses 19 and 20 amend the Land Tax Act 1958. The Committee notes the comments in the Second Reading Speech:-

"Schedule 2 of the Land Tax Act 1958 is amended to resolve the uncertainty as to the application of the capping provisions. The Bill ensures that the unimproved value of land to be used in determining the capped liability after a subdivision or consolidation of land in or after 1993 or 1994 will be the unimproved value of the land immediately following that subdivision or consolidation. An amendment to the charitable exemption ensures that land must be used by a charitable body for charitable purposes in order for that land to be exempt from land tax."

Clause 21 makes minor amendments to the Pay-Roll Tax Act 1971. New section 21(c) repeals "Part VC" which relates to the pay-roll tax suspense account. The Committee has written to the Minister seeking his advice as to whether there is a typographical error and whether "Part VC" should read "Part 5C".

12.5 Part 7 - Stamps Act 1958
Part 8 - Valuation of Land Act 1960

Clause 22 amends section 71A which relates to the first home buyers' exemption. Clause 23 inserts new section 137MC to exempt certain re-financed business loans from stamp duty on the re-financing. The Committee notes the comments in the Second Reading Speech:-

"The Bill amends the Stamps Act 1958...to remove the mortgage stamp duty on the re-financing of business loans as from 1 April 1996. The relief from stamp duty will be provided to persons carrying on a trade, business or profession who are refinancing an existing business loan on which stamp duty has already been paid.......

The Stamps Act 1958 is also amended to vary the thresholds at which first home buyers and pensioners can obtain exemptions or concessions on the purchase of a home. The thresholds of property value at which a pensioner is entitled to a full exemption from stamp duty on the purchase of a first home is raised from $55,000 to $70,000. The threshold at which the partial exemption phases out is raised from $65,000 to $100,000. The income qualification threshold for first home buyers exemption is raised, in the case of an applicant having one dependent child, form $33,000 to $39,000 and in the case of an applicant having two or more children, the threshold is raised from $34,000 to $40,000. The threshold of property value at which first home buyers are entitled to full exemption remains at $100,000 however the threshold at which the partial exemption phases out is raised from $111,000 to $150,000.........

The Bill further amends the Stamps Act 1958 by changing the maximum stamp duty payable on statements of livestock by relating the maximum to the amounts of compensation fixed under section 74(2) of the Livestock Disease Control Act 1994 rather than to purchase money. The amendment also changes the definition of 'calf' to mean any cattle less than 6 weeks old."

Clause 25 amends section 2 of the Valuation of Land Act 1960 to provide for the consistent application of land tax to Victoria's ports.

The Committee makes no further comment.

ELECTRICITY INDUSTRY (AMENDMENT) BILL

13.1

This Bill was introduced into the Legislative Assembly on 15 May 1996 by the Honourable Alan Stockdale MP with the Honourable Phil Gude MP.

13.2

The purpose of the Bill is to make miscellaneous amendments to the Electricity Industry Act 1993.

13.3

Clause 4 inserts various definitions. Clause 8 inserts new section 36A which requires electricity corporations to act in accordance with corporate plans. Clause 9 amends sections 42B and 46. The Committee notes the comments in the Second Reading Speech:-

"Sections 42B and 46 of the Act confer certain rights in relation to the acquisition of land and the payment of municipal rates on 'generation companies' as defined in the Act. Both sections are amended by the Bill to confer the same rights on entities that are not 'generation companies' because they have been exempted from the requirement to hold a generation licence. The provision will only apply where an associated entity of the generation company does hold a licence to operate the relevant generation facilities."

Clause 10 substitutes new section 53 in relation to directions which may be given. Any such directions must be included in appropriate annual reports. Clause 11 establishes the Office of the Electrical Inspector. New section 58 is the delegation provision. New section 58 is very broadly drafted. The Committee is of the view that the provision may contravene section 4D(a)(ii) in that it makes rights, freedoms or obligations dependent upon insufficiently defined administrative powers. The Committee is of the view that either the power to be delegated should be specified or the recipient of the power should be specified. The Committee has written to the Minister seeking his advice as to whether an appropriate amendment can be made.

Clause 13 inserts new section 91AA which authorises specified matters/things for the purposes of the Trade Practices Act 1974 and the Competition Code. Clause 15 amends section 158C to permit a single new order to be made under section 158B to amend, vary or replace the existing order. Clause 16 amends section 173 which relates to prohibited interests. The Committee notes the comments in the Second Reading Speech:-

"The cross ownership restrictions contained in Part 13 of the Act are amended by the Bill so as to permit a person to hold controlling interests in two or more licensees where the Office of the Regulator-General is satisfied that the interests are held as passive institutional investments only. At present this exception only applies to the holding of substantial interests."

Clauses 17 to 20 are transitional and consequential provisions.

WATER ACTS (AMENDMENT) BILL

14.1

This Bill was introduced into the Legislative Assembly on 15 May 1996 by the Honourable Alan Stockdale MP with the Honourable Phil Gude MP.

14.2

The purpose of the Bill is to make miscellaneous amendments to the Water Act 1989, the Water Industry Act 1994 and the Melbourne and Metropolitan Board of Works Act 1958.

14.3

Clause 4 amends sections 3 and 144 to provide that waterway management authorities are exempt from the obligation to serve a notice on each landowner in their districts when declaring a property to be "serviced property". Clause 5 provides that a bulk entitlement order is to be published in the Government Gazette which states where copies of the order may be obtained. This is sufficient compliance for the purposes of the Act. The Committee notes the comments in the Second Reading Speech:-

"Other amendments contained in Part 2 are designed to streamline and improve the administration of the Water Act, including removing the need for waterway management authorities to serve notice on each individual property owner for the purpose of declaring land to be serviced and liable to a rate, and also dealing with the publication of bulk entitlement orders, which at present have to be published in full. The current procedures for dealing with these matters are unnecessarily cumbersome and expensive. The more usual commercial practice of placing notification in local newspapers is to be adopted, while notice of the bulk entitlement orders will be published, rather than the full order."

Clause 7 inserts new sections 101A and 101B which clarifies interests in land and gives the Registrar of Titles the power to make amendments where necessary. Clause 8 enables the Minister to declare by order that a waterway management Authority has some or all of the floodplain management functions set out in section 202. Note new subsections (2) and (3) of section 306 are delegation provisions. The Committee notes the comments in the Second Reading Speech:-

"The operation of the Act will be enhanced by allowing the Minister to give a delegate the ability to sub-delegate so that relevant authorities can organise which officers are to be responsible for different duties without the need for the Minister to delegate to individual positions.".....

The Committee is of the view that the delegation provision may contravene section 4D(a)(i) of the Parliamentary Committees Act 1968 in that it makes rights, freedoms or obligations dependent upon insufficiently defined administrative powers. The provision enables a delegate to whom a power of delegation is delegated to sub-delegate to any person or class of persons any power, discretion etc. delegated to that delegate. The provision is broadly drafted. The Committee is of the view that either the power to be delegated should be specified or the recipient of the power should be specified. The Committee has written to the Minister seeking his advice as to whether an appropriate amendment can be made or whether the provision can be more simply redrafted.

Clause 9 gives the Minister the power to declare a floodway. Clause 10 clarifies the role of the Minister and an appointed committee in relation to water management schemes. Clause 11 ensures that the Minister may nominate a municipal council as the body responsible for implementing a water management scheme. Clause 12 clarifies that the unauthorised removal of water meter is an offence under the Act.

14.4 Part 3 - Water Industry Act 1994

Clause 13 inserts new section 21A which gives the Governor in Council the power to regulate pricing. Clause 15 removes the ability to fix fees and charges by regulation. The Committee notes the comments in the Second Reading Speech:-

"In 1994 the Government froze prices for domestic water and sewerage services in the Melbourne area. This freeze will remain until at least 1 January 1997. The amendments contained in clause 13 will allow the Government to regulate prices after that date until pricing oversight is formally transferred to the Office of the Regulator-General. Once the Office of the Regulator-General issues a pricing order in relation to a particular price or charge, the ability of the Governor in Council to make further orders in relation to that price or charge will cease."

Clause 16 substitutes a new section 58 in relation to the power to enter land. Clause 19 inserts new sections 135A and 135B which relate to the grant of licences for jetties and the leasing of waterways. Clause 20 provides that a person can be required to pay a Melbourne Parks and Waterways' rate within 14 days rather than 28 days.

14.5 Part 4 - Melbourne and Metropolitan Board of Works Act 1958

Clause 23 enables Melbourne Water Corporation to receive or dispose of trade waste in an emergency. Clause 24 links the rating powers under the Act with the provision of water supply services under the Water Industry Act 1994. Clause 25 enables water, sewerage and drainage rates to be recoverable from a mortgagee in possession. Clause 26 enables Melbourne Water Corporation the power to levy rates for floodplain management. It makes it clear that floodplain management will continue to be funded from the drainage rate.

VICTORIAN MANAGED INSURANCE AUTHORITY BILL

15.1

This Bill was introduced into the Legislative Assembly on 15 May 1996 by the Honourable Alan Stockdale MP with the Honourable Phil Gude MP.

15.2

The purpose of the Bill is to establish the Victorian Managed Insurance Authority.

15.3 Part 2 - Victorian Managed Authority

Clause 5 establishes the Victorian Managed Insurance Authority. Clause 6 sets out its functions. Clause 9 is the delegation provision. The Committee notes that there has been an attempt to limit the delegation provision. However the provision is still broadly drafted. Power may be delegated "with the consent of the Treasurer" to "any other person or class of persons." The Committee is of the view that the delegation provision may contravene section 4D(a)(ii) of the Parliamentary Committees Act 1968 in that it makes rights, freedoms or obligations dependent upon insufficiently defined administrative powers. The Committee is of the view that either the power to be delegated should be specified or the recipient of the power should be specified. The Committee has written to the Minister seeking his advice as to whether an appropriate amendment can be made.

Clauses 10 to 22 relate to the Board of Directors, appointment, resignation, proceedings and disclosure of interests.

15.4
Part 3 - Operations of the Authority, Part 4 - Regulations,
Part 5 - Transitional, Part 6 - Consequential

Clause 23 requires each department to maintain a register of assets. Clause 26 gives the Authority borrowing and investment powers. Clause 27 provides the Victorian Government will guarantee amounts payable by the Authority as a result of or in connection with the liabilities of the Authority. Clause 28 provides that appropriation in respect of any guarantees is to be paid out of the Consolidated Fund. Clause 30 gives the Governor in Council the power to make regulations. Clauses 31 to 35 contain transitional provisions. Clause 36 amends Schedule 1 of the Borrowing and Investment Powers Act 1987 by inserting Victorian Managed Insurance Authority as item 21A.

Committee Room
23 May 1996

Last update 29/7/99
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